Over the past week or two we have seen feed grains under pressure with producers raising indications and feeders backing off their bids. March 15th we traded Barley FOB Eckville AB with May/June delivery for $6.55/bus FOB. Yesterday we were getting bids at Aldersyde AB for the same time frame at $6.37/bus FOB. With record feed prices this year and road restrictions hitting early this year feeders are taking the opportunity to, take a step back, have a breather and check inventory required between now and new crop. It appears the export market for feed grains is cooling off slightly easing the upward pressure on prices.
-Many feeders have indicated at current feed prices they do not plan to replace the mouths to feed at the same ratio that they are slaughtered. Its sounding like the processors still have large backlogs to work through.
-Yellow Peas had an excellent year reaching over $11 FOB this winter and now cooling back to $9.50-$10.00 FOB. New crop in Saskatchewan is right around $9.25 delivered for Sept/Oct movement. In Alberta we have been seeing $9.60 delivered for Sept/Oct and $10.00 delivered for Jan/Feb/Mar.
-The Green Pea market has been cold since the new year. Currently we are seeing April/May bids at $9.00 FOB. Many producers are saying they won’t sell their Green Peas for a discount to Yellow Peas to which processors are responding “Green Peas aren’t under priced it is Yellow Peas that are over priced.”
-The Canola market has remained volatile hitting a ceiling at $800 backing off to $750 and returning back to test the $800 highs. As a result, it has been a fantastic year to sell any off condition Canola (heated, green, spring thrashed). If you have any I would suggest giving any of us a call to figure out pricing and movement timeframe.
-We have seen some strength in Lentils with Reds coming up from 0.28 FOB to 0.30 FOB over the past couple months. Producers remain bullish on possible exports to India but that window is slowly closing.
-Flax processors are saying they should be well covered between now and new crop with the odd hole to fill but that has brought bids back from $24 to $23 FOB.
-The Milling Oat market has been as high as $4.50 delivered and cooling off as buyers/processors have bought coverage into new crop. Current bids range from $3.75 FOB in Saskatchewan to $4.15 FOB in Manitoba.
Give us a call if you have any questions or would like to price out current crop or new crop
Until next time,
John Falk Richie Yaremko
Marketer – Altona MB Marketer – Yorkton SK
Victor Dorma Reed McDonald
Marketer - Airdrie AB Owner/Marketer – Calgary AB.
Wes Schneider Howard Warren
Marketer - Vulcan AB Marketer – Champion AB
Robert Rusu Andrew Hall
Marketer - Moose Jaw SK Marketer – Lethbridge AB
204-729-1354 – office
204-761-8320 - cell
Since the weather is a safe place to start a conversation. How do you like these temperature swings. -31C yesterday to +2C this morning in Brandon. The good news is that spring is coming and we will see the usual ups and downs through March and April. Lets hope that in these 2 months we see some good general rains. Every where in western Canada is dry right now. Hope that changes before the drills start rolling.
I have a little comment to make on these great prices we are seeing. As we all know high prices have a tendency to cure high prices. These prices will be good until they aren’t. my biggest concern is that some producers will think that prices have to keep going up and maybe they are right. The big problem is that when they start down you will likely not be able to sell fast enough to catch the rally. I have seen this happen several times in my 45 years in the grain industry and it isn’t pretty.
This is possibly a place to consider pricing some new crop grain. We are seeing good values of several commodities. We will make sure that you have good reliable buyers. Most of our pulse buyers are offering AoG clauses which could be very valuable come this fall. Give us a call for help.
New crop prices
Yellow peas - $9-$9.50
Feed barley - $4.75 Aug/Sept SE SK
That being said we are seeing strong prices across the board. $7.50 feed wheat, $6.00 feed barley, $10 yellow peas, $23 brown flax, $4.25 oats. These are some of the values we have been trading in the past 2 weeks. These prices are from different locations in MB, SK and AB. If you have any interest in exploring what values are at your bin call or email us and we will do what we do and make your market easier and more efficient.
We are still seeing good demand for:
Feed barley, wheat and oats
Heated canola -e.g 60-70% heated at Wawota SK traded for $9.64 picked up.
Give any one of us a call and we will do the tire kicking for you. Until next month safe farming.